Tax credit and self employment

[bodsier]

Hi is tax credit self employed assessment on line now working together so that you don't have to send tax credit your income details anymore? Does that mean you don't have to contact tax credit with your income details anymore? Can anyone tell me?

[Angelina]

I would never assume tax departments are working together and would always play it safe.

You should call the tax office and ask them about your personal circumstances and what you personally need to complete/ submit.

I would certainly say you have to inform tax credit of your income details - regardless of completing a Self Employment return.

This aside, tax credit will want to know of any changes to your income, whereas the assessment is an annual position (cumulative).

[bawdy-nan]

Don't assume tax credit linked to SA and also, because SA is "behind" (ie requirement to file returns for year end April not until following Jan) you can get into a terrible mess if you follow SA deadlines. Generally its best to report estimated incomes as accurately as you can at whatever point you can or you may end up being overpaid a huge amount of money. If you give estimates as soon as you know (near the year end if you can, or earlier if you detect a likely big change in your annual income)and then confirm once you file SA you should be ok. They seem to be able work very well with this method.

New Universal Credit (tax credits, housing benefit and any other "working" benefits) rules will mean the self employed will have to file monthly returns. There's also a proposal that self employed people, irrespective of their benefits status will have to file quarterly returns.